Compute the remaining margin in the account

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Reference no: EM131543560

Passé Traders opened an account to short-sell 1,000 shares of Internet Dreams at $130 per share. The initial margin requirement was 50%. A year later, the price of Internet Dreams has risen from $130 to $140, and the stock has paid a dividend of $2 per share.

a. Compute the remaining margin in the account.

b. If the maintenance margin requirement is 30%, will Passé Traders receive a margin call? Show all computations.

Reference no: EM131543560

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